Schlumberger, Smith agree to merge

Schlumberger, Smith agree to merge

Offshore staff

HOUSTON -- Schlumberger Ltd. and Smith International boards of directos have reached a definitive merger agreement. The closing is expected in the second half of 2010 following various approvals and waiting period requirements.

The merger is to be a stock-for-stock transaction.

"We firmly believe, however, that the next breakthrough will be through engineered drilling systems that optimize all the components of the drillstring, allowing our customers to drill more economically in demanding conditions." said Andrew Gould, chairman and CEO of Schlumberger." This step change in drilling performance and well productivity must come from combining measurement and steering capabilities with the engineering and design of the complete bottom-hole assembly and its various components—including the drilling fluids and drillbit—with the hydraulic and mechanical environment in which they operate."

"Schlumberger offers Smith’s various segments enhanced engineering and design capability to place our products and expertise at the center of the total drilling system of the future," said John Yearwood CEO of Smith. :We look forward to a successful combination with Schlumberger and have no doubt that our customers will see accelerated technology development and that our employees will enjoy enhanced opportunities.”

02/22/2010

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